Jai Corp Shares Down by 19%, Nears 52-Week Low; Down 37% in a Month

Jai Corp’s share price plunged 19% to ₹252 in Thursday’s intra-day trade on the BSE. This decline occurred amidst heavy trading volumes after the company announced a proposed capital reduction by Urban Infrastructure Holdings Pvt. Ltd. (UIHPL), where Jai Corp holds a 32% stake.

At 10:41 AM, the stock was trading 18% lower at ₹252.85, contrasting with a 0.6% rise in the BSE Sensex. Trading volumes soared, with 11.34 million shares, or 6.4% of Jai Corp’s total equity, changing hands on the NSE and BSE.

Capital Reduction Details

UIHPL has called for an extraordinary general meeting to seek shareholder approval for the capital reduction plan. This proposal also requires clearance from the National Company Law Tribunal (NCLT) and other regulatory bodies.

Once approved, Jai Corp is expected to receive ₹364 crore from the capital reduction, according to the company’s exchange filing.

Recent Price Trends

• Jai Corp’s stock has fallen 37% in the past month, from ₹401 on December 5, 2024.
• The stock hit its 52-week high of ₹438 on July 2, 2024, and is now close to its 52-week low of ₹250 recorded on March 14, 2024.

Buyback and Stake Sale Updates

In September 2024, Jai Corp completed a buyback of 2.94 million equity shares at ₹400 per share through a tender offer. The promoter group tendered 1.95 million shares, representing 1.09% of their stake.

On January 1, 2024, Jai Corp announced that Dronagiri Infrastructure Private Limited (DIPL), a UIHPL subsidiary, sold its 74% stake in Navi Mumbai IIA Private Limited (NMIIA) for ₹1,628.03 crore.

The sharp decline in Jai Corp’s stock reflects investor concerns amid these developments. However, the proceeds from the capital reduction and the recent stake sale could potentially strengthen the company’s financial position.

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